If you're like most people, you probably don't rent a car very often. But when you do rent a car, you're at risk of getting in an accident because you're likely to be unfamiliar with the vehicle and the area where you're driving.
So, what happens if you get in a car accident in a rental car? For the most part, handling a rental car accident is similar to how you'd handle an accident in your own car, but you'll have to take a few additional steps to deal with car rental coverage and insurance claims.
What to Do Immediately After a Rental Car Accident
If you’ve been in an accident in a rented vehicle, you'll want to:
- Get medical attention for anyone who seems to have suffered even minor injuries.
- Call law enforcement to report the accident and get a copy of the police report when it's available.
- Exchange insurance and contact information with everyone involved in the accident.
- Write down everything you can remember about the accident and take pictures of the accident scene, the vehicles involved, and your injuries.
- Get contact information for anyone who may have seen the accident.
- Contact the rental car company to report the accident. You can typically find an emergency number on your rental car agreement or in the glove box.
- If you're relying on your own car insurance policy, contact your insurance company about the rental car accident.
- If you booked your rental car with a credit card that offers rental car coverage, contact the credit card company.
Learn more about what to do after a car accident.
Does My Auto Insurance Cover a Rental Car Accident?
If you have your own auto insurance, your policy will typically cover you when you're driving a rental car with the same coverage limits and deductibles as when you're driving your own car. For example, if you carry collision coverage on your auto policy, you'll be protected against physical damage to your rental car. Your liability coverage will apply if you're at fault for a rental car accident that causes injuries, vehicle damage, and other losses.
Check your auto insurance policy before you decline coverage offered by the rental car company. Your personal auto insurance typically won't cover you when you're renting a car for business or commercial purposes. And you'll want to be sure you have enough coverage for the rental car you're driving. If you're renting a car of similar value to your personal car, you should be okay. But if you drive an old Honda Civic and you rent a brand new sports car for your blowout beach vacation, you'll probably need to purchase additional coverage from the rental company.
Learn more about how insurance affects a car accident case.
Rental Car Insurance
When you rent a car, the rental car agent will offer you the option of buying rental car insurance.
The most common types of rental car insurance include:
- Liability: Covers you for damages and injuries you cause when you're at fault for a rental car accident.
- Collision damage waiver: Releases you from financial responsibility for damage that occurs to a rental car, including theft and vandalism.
- Personal effects coverage: Pays to repair or replace your personal items if they're damaged, destroyed, or stolen while in the rental car.
- Personal accident insurance: Covers accident-related medical expenses for you and your passengers.
If you don't have your own liability insurance, the rental car company will likely require you to buy its liability coverage. You will have the option to add additional coverage, but it may overlap with personal insurance coverage you already have. For example, if you have your own auto insurance policy, you probably don't need to purchase a collision damage waiver and additional liability insurance. If you have homeowners or renters insurance, you probably don't need to purchase personal effects coverage. If you have health insurance, you might not need to purchase personal accident coverage.
Learn more about rental car insurance and when you should purchase a collision damage waiver.
Credit Card Rental Insurance
Most major credit cards offer some insurance coverage for rental cars. You have to book the rental with the credit card to qualify for coverage.
Most credit cards don't offer liability coverage. If you don't have your own liability coverage, you should purchase it from the rental car company or you'll be on the hook for the medical and car repair expenses of other parties involved in an accident you cause.
Some credit cards offer high coverage limits and "primary" coverage, which will often cover the full cost of your damages from an accident, theft, or vandalism. If your credit card company offers primary rental car insurance, you'll probably be able to bypass your own car insurance and avoid a potential insurance rate hike as a result of the accident.
More often credit card companies offer lower coverage limits and "secondary" coverage, meaning you'll have to file a claim with your own insurance company first and rely on secondary coverage to pick up fees and charges that your insurance company doesn't cover, like reimbursing your deductible.
Check with your credit card company for specific coverage information, rules, and restrictions.
What If the Rental Car Accident Wasn't My Fault?
In most states, the driver who is at fault for a car accident is on the financial hook for injuries, vehicle damage, and other losses resulting from the accident. If another driver damages your rental car, you should contact the rental car company right away. You or the company can file a claim with the at-fault driver's car insurance company to cover damage to the rental car and pay for your accident-related losses.
When the Rental Car Company May Be Liable for Your Accident
In most rental car accidents, a driver involved in the accident will be liable (legally responsible) for damages caused by the accident. But in rare cases, the rental company can be liable too.
A rental car company might bear some or all legal responsibility for an accident if you can show that the company failed to maintain the vehicle, or knew about some vehicle defect and failed to fix it, and that failure played a role in the accident.
For example, let's say you rear-end someone in your rental car even though you braked in a safe manner. If you can show that the rental car’s ABS braking system was malfunctioning and that brake failure caused or contributed to your accident, then the rental car company could be liable for the crash.
You might also be able to sue a rental car company if the company negligently rents a car to an at-risk driver and that driver hits you. For example, if a company rents a car to a driver whose license is suspended for multiple driving under the influence convictions and that driver hits you, the rental company might be on the hook for your medical bills, lost income, property damage, and pain and suffering.
How to Protect Yourself in Case of a Rental Car Accident
You can't necessarily prevent a rental car accident, but you can protect yourself from the financial risks of a rental car accident. The most important step you can take is to make sure you are properly insured. Potential sources of rental car coverage include:
- your own insurance company
- the rental car company
- your credit card company, and
- the other driver's car insurance company.
Review your own existing insurance policy first. If you don't have insurance or your existing policy doesn't adequately cover your rental car, you should find out whether your credit card provides rental car insurance. If so, figure out whether it offers primary or secondary coverage and on what terms.
If you aren't covered by your own insurance or credit card company, you should purchase insurance from the rental car company. You can also look into purchasing rental car insurance from another company (called a "third-party rental car insurance company"), which is often cheaper than purchasing it directly from the rental car company.
The amount of insurance you'll need is up to you. Most states require drivers to carry a minimum amount of liability insurance. Some people are comfortable with the minimum amount, while others prefer full coverage.
Talk to a Lawyer
If you've been in a rental car accident, talk to a lawyer. A rental car accident is more complicated than an accident in your own car. A car accident lawyer can answer your questions about insurance coverage and help you figure out who was at fault for the accident.
Learn more about when you need a car accident lawyer. You can also connect with a lawyer directly from this page for free.